Texas House Bill HB68

Texas 2023 - 88th 2nd C.S.

• Filed: 7/11/23

Caption

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

Impact

The proposed changes to the Texas Tax Code would significantly alter how property taxes are assessed for specific demographics, particularly the elderly. Beginning in the 2024 tax year, the bill stipulates that the exemptions will only apply under particular conditions and will necessitate approval of a concurrent constitutional amendment. This amendment aims to confirm that the anticipated tax relief measures can be enacted without adverse effects on local revenues. If approved, the legislation will affect local taxing authorities and the way they calculate revenue from property taxes.

Summary

House Bill 68 seeks to provide an exemption from ad valorem taxation for the total appraised value of residence homesteads owned by individuals who are 72 years of age or older, as well as their surviving spouses. This exemption is contingent on the individual having held an exemption for at least the preceding ten years. The bill is aimed at alleviating the tax burden on elderly homeowners who may face financial difficulties due to rising property taxes, thus supporting their long-term residence and financial stability within their communities.

Sentiment

The sentiment surrounding HB 68 appears largely positive among proponents who argue it will provide essential support for elderly homeowners, allowing them to remain in their homes without the fear of increasing taxation. Advocates point out that this bill addresses a significant concern for many seniors who are asset-rich but cash-poor. However, there are some reservations regarding its financial implications on local governments' revenue streams, potentially leading to reductions in funding for essential services reliant on property taxes.

Contention

Notable points of contention within discussions of HB 68 include the potential impact on local government budgets and the source of replacement revenue should property taxes decrease significantly. Detractors argue that the proposed tax exemptions could necessitate funding adjustments that might harm essential services or lead to increased burdens on other taxpayers. Additionally, concerns about the criteria for eligibility—particularly the requirement that individuals must have held previous exemptions for ten years—might exclude otherwise qualified seniors who had previously moved or changed their living situations.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section

• Chapter 26. Assessment
  • Section: New Section
  • Section: 112

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302